Aon Hewitt launches guide to DC pensions

Aon Hewitt has launched a guide to defined contribution (DC) pension schemes.

Achieving better member outcomes – a practical guide to DC pensions provides an overview to employers and trustees of all aspects of DC pensions.

The guide covers:

• Understanding the plan and setting priorities.
• Improving savings rates.
• Investment strategies.
• Designing the default option.
• Making the right choices at retirement.
• Improving member outcomes.

Jan Burke (pictured), partner and head of DC consulting at Aon Hewitt, said: “More UK workers than ever are now saving for their retirement via DC schemes rather than via defined benefit schemes.  

“Even so, the pensions industry has been somewhat slow to adjust to this change and there is a relative dearth of good advice and guidance for those running these scheme, even though they will be the way the majority of the current and future generations of employees will be funding their retirement.

“Much of the guidance we have seen tends, and with good intentions, to focus on specific elements of DC schemes, but without taking on all their implications.  

“With this guide we have tried to take a helicopter view of all aspects of DC schemes, which we hope will give [employers and trustees] the all-round perspective they need.”